Audax Renovables, agreement for the purchase of solar energy in Italy

January 16, 2019 - Audax Renovables, a company born from recent merger between Audax Energía and Audax Renovables, has formalized a memorandum of understanding (PPA*) with BAS FV Italia which provides for the long-term sale and purchase of 100% of the electricity production of two photovoltaic solar plants of 10 MW each.

BAS FV Italia SL, a company managed by the investment fund NGC Partners specialized in the development and implementation of renewable energy activities in Europe and America, is completing two projects solar photovoltaic in Basilicata. It is expected to hit the market in late 2019.

With the signing of the agreement, the parties have agreed on both the purchase price of the energy and the duration of the PPA and the guarantees between the parties; other contractual terms related to the financial closing conditions and the obtaining of the necessary administrative and environmental permits remain pending.

Furthermore, under the agreement, Audax Renovables will act as the representative of the two photovoltaic plants, in terms of the management of the programming and the sale of energy in Italy. This will allow it not only to consolidate but also to strengthen its position in the Italian market, to surpass the already excellent result of 2018, with +53% of energy sold in Italy in 2018.

“The PPA just signed marks both a point of arrival and a starting point in the history of Audax Energia in our country” states Francesco Calabretta, Country Manager for Italy. “In fact, the agreement is both the culmination of continuous and sustained growth recorded in recent years, and a founding element from which to start for the Group's future strategies in Italy. The objective always remains the same: to offer an ever-improving service to users, with the usual dual focus of Audax towards sustainable solutions for the environment and convenient for customers”.

*PPAs or Power Purchase Agreements are long-term energy purchase agreements that are becoming more widespread today, especially between renewable energy producers and large energy sales companies (offtakers). On the one hand, they are able to bring a certain stability to the inflows for producers, avoiding the problem of market volatility and facilitating the financing or “bankability” of projects. On the other hand, large sales companies purchase energy with better economic conditions than those they would have had by buying it on wholesale markets, thus obtaining competitive advantages – in the short and medium term – in energy supply compared to competitors.